When a manager must choose between two downsizing plans in which either 200 jobs will be saved for certain or 600 jobs might be saved, the manager will most likely be ______________ in approaching the problem.
A) Risk seeking.
B) Risk averse.
C) Risk neutral.
D) It is impossible to tell from the information given.

Question

Quizplus · Accepted Answer

Given the choice between a certain outcome and a gamble, people tend to prefer the certain outcome, which is indicative of risk aversion. In this scenario, choosing the certain saving of 200 jobs over the possibility of saving 600 jobs reflects a preference for avoiding risk.

When a Manager Must Choose Between Two Downsizing Plans in Which